The Future Of The Mall

What can commercial real estate professionals do to save malls?

Commercial real estate is always changing, but no other area has experienced more change than the mall. Shopping centers of all different sizes have felt the effects of online shopping, supply chain issues, and most importantly, convenience. With more shoppers choosing the easier, faster, and sometimes, cheaper option of online shopping, where does that leave “mega-malls”?

As malls begin to have more vacancies, it's easy to wonder what could possibly save them from total extinction. We plan on covering some topics in this discussion, but one interesting one is a new type of operation known as “Medtail” - Medical Retail. We already track some medical offices in REGIS Online and other medical services, like dentists. However, medtail is specifically retailers with health services. Think of drug stores like CVS, which has its own brand for health services called Minute Clinic, or Walgreens, which recently partnered with VillageMD. Drug stores work well for these stores since they already have convenient locations and available pharmacies for quick treatments.

As the baby boomer generation ages, many experts are beginning to suspect a need for more medical and specialized care facilities. Many areas are already preparing for this increased need by building out assisted living facilities and medical office zoning. The Mall of America - the largest mall in the country - built a walk-in clinic of its own in 2019, with the University of Minnesota. They state in their press release that:

While the Mall of America adds more services to its 5.6 million square feet, other centers can reap the same benefits. In case you didn't know, we track over 80 different types of medical and specialists offices in the “Health Care” category of REGIS Online. According to our data, there are over 31,000 Chiropractors, 26,000 Physical Therapists, and 23,000 Optometrists Offices nationwide. Medical providers like these examples can provide great opportunity for both the mall and office, with a broader range of services, new customers, and revived interest in the area. Malls and Shopping Centers will always have a place in this industry, but it's never been more important to know what the people want … and what they need. •

Last Modified June 10, 2022